Starting and growing a business can be compared to a journey through uncharted territory. The planning process helps a business owner determine the best possible path to take in order to most efficiently use the company’s financial and human resources, and to insulate the business from competitive threats as much as is feasible.

Time Frame

Developing a business plan should be a thoughtful process that takes up to three months to complete. Many times business owners hurry through the planning process because they are anxious to get their plan in front of potential investors or lenders. This is a mistake because one of the purposes of putting the plan on paper is to demonstrate to these investors or lenders that you have thought out the steps necessary and resources required to build the company. Having a solid plan in place will also give you more confidence when meeting with prospective financial sources. When asked tough, complex questions by investors, you will have answers ready.

Research Needed

Gathering information about your market and competition is a critical phase of the planning process. You want to be able to demonstrate to investors, and to yourself, that your market has considerable potential for growth in the next three to five years, and that competitors are not so entrenched that there is little opportunity for a new company such as yours to enter the market. Analyze both the weaknesses and strengths of your most significant competitors to find where they might be most vulnerable; focus your marketing strategies accordingly.

Establishing Market Need

Entrepreneurs should not let their enthusiasm for their ideas, technologies or products to blind them to a harsh reality of the business world. In order for your venture to be profitable, large numbers of customers must have a compelling need for what you will be bringing to the marketplace. This compelling need coupled with a marketing message that clearly shows the benefits of your products or services is what motivates customers to be willing to buy from you. Make sure you can show that the customer has a problem that significantly and negatively impacts their lives or businesses, and that you have the most effective solution developed thus far.

A Vision of the Future

For your plan to be a useful roadmap to success, you must have a clear idea of your long-range goal, or a vision of how large your company could become. Being able to see your company’s future is important because every decision you make should move the company toward the realization of that vision. The long-range goal impacts decisions such as the amount of employees you will hire, how much capital you need, the products you will be offering and the markets you will be entering.

Building a Team

Finding and hiring the most talented people is often the decisive factor in whether the business achieves success or not. Map out the skills and experience you need to add to your management team as the company grows. Different companies need teams with different skill sets. Make sure you design your management team to have what it takes to succeed in your specific venture.

About the Author

Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his latest book, published in 2013, "The Pocket Small Business Owner's Guide to Business Plans."